390 Report 8. A. A. Advancement of Science. 



It is quite evident that it is Lord Avebuiy's opinion that the 

 duty of municipal councillors and other persons holding office on local 

 boards is to govern, viz., to watch over the interests of the ratepa3'ers, 

 and see that those interests are properly protected. Further, that if a 

 uiunicipalitv is trading itself, there is no authority to see that its 

 trading operations are properly carried out in the best interests of 

 the ratepayers. 



To these points might be added two more : first, that municipal 

 trading deadens private enterprise ; second, that it is impossible to find 

 men to give their time without remuneration to properly control and 

 direct large industrial and commercial undertakings. The advocates 

 of general municipal trading are in favour of municipalities acting as 

 bankers : and in the several Bills whicli sundry municipalities pre- 

 sented to Parliament during the year 1900 powers were asked for 

 pawnbroking, coal-supplying, saddlery, manufacture of electrical fit- 

 tings, and other branches of ti-ade and manufacture ; so that there 

 is absolutely no doubt that there is a very considerable proportion 

 of people who genuinely believe in municipalities undertaking the 

 functions of as many different kinds of trading organisations as 

 possible. 



Now the moflerate municipal trader does not go as far as this, 

 but follows entirely in the steps of 8ir Henry Fowler (who perhaps 

 is their best exponent), who states : " 1 have always advocated the 

 placing of public water, of public light and similar undertakings in 

 the hands of municipalities." He goes on, however, to state that he 

 does not accept the theory that the limit of successful municipal work 

 has then been reached, but when municipal and local bodies are claim- 

 ing wider powers, embracing new areas of commercial and industrial 

 activity, questions arise not only as to the extent to which those 

 powers should be granted, but also as to the regulations and checks 

 by which they shoidd be accompanied. 



Now in this colony the loans to local bodies by the Government 

 amounted to £443,364 on the 31st December, 1906 ; but that amount 

 is only a very small proportion of the total loans, as, dealing only with 

 certain large towns, we find that their indebtedness, from the last 

 figures a\ailable, is approximately as follows : — 



Capetown ... ... ... ... £3,000,000 



East London ... ... ... 450,000 



Kimberley ... ... ... ... 47,000 



Port Elizabeth ... ... ... 850,000 



Woodstock ... ... ... ... 680,000 



Mowbrav ... ... ... ... 168,000 



Wynberg ... ... ... ... 290,000 



Kingwilliamstown ... ... ... 123,000 



Gi-een and 8ea Point ... ... ... 12 1 ,000 



Grahamstown ... ... ... 79,000 



Claremont ... ... ... ... 107,000 



The Woodstock loan includes ,£350,000 for watei- scheme, for 



